There is risk energy taxes; and energy subsidies. While these are unable to make those commitments, this raises of a harmful market interventions can help mitigate the effects the question of how to make the energy transition subsidy race of the energy crisis, minimizing uncertainty in the inclusive. If the goal is to protect consumers where advanced investment landscape is required to ensure that these from price shock and to correct market failures, economies with measures do not deter much-needed investment. a coordinated approach is required, allowing greater 昀椀scal subsidies to be targeted to meet the needs of power might ETI trends further show that following an initial the poorest and most vulnerable nations and emerge as winners, decline in the last few years, energy subsidies households, and to ensure a level playing 昀椀eld. have been reintroduced rapidly and at much and emerging higher levels. Fossil fuel consumption subsidies and developing worldwide soared in 2022; oil subsidies increased Secure economies with by approximately 85%, and natural gas and scarcer 昀椀scal electricity consumption subsidies more than 9 Even though these subsidies are meant to Energy security is “a primary concern for resources would doubled. 昀椀nd it dif昀椀cult protect consumers from volatile energy prices, they governments and economic players across the to compete. create an additional burden on governments amid globe, and a dimension whose impacts multiply tightening 昀椀scal space and spending pressures on across supply chains, countries and international other priorities and reduce incentives for consumers systems. People, companies and nations depend to adapt energy consumption to price levels. In on secure and uninterrupted access to energy at 11 the face of persisting price pressures and crisis affordable prices”. The ETI’s secure dimension conditions, these measures require signi昀椀cant tracks energy supply, reliability and resilience. On cumulative resources, which poses serious risks a global scale, the secure dimension scores have for the energy sector particularly in emerging and shown the most progress over the past decade, developing economies. although they still lag the equitable and sustainable dimensions. Figure 9 shows the dimension score The risk now is a harmful subsidy race where over time. Advanced economies, such as United advanced economies with greater 昀椀scal power States, Australia and Estonia, score highly due to might emerge as winners, and emerging and mature energy infrastructure, and many are able developing economies with scarcer 昀椀scal resources to withstand potential disruptions to gas supply would 昀椀nd it dif昀椀cult to compete with them for chains. Malaysia scores highly due to supply investments. This could also hinder the transfer of diversity and reliability. Major fuel exporters, such as technology to these nations, ultimately raising the Saudi Arabia, UAE and Azerbaijan, also score highly 10 For countries that due to their gas reserves. cost of the energy transition. FIGURE 9 ETI secure dimension trend, 2014-2023 68 66 64 66.6 65.6 65.7 66.1 66.2 62 65.2 65.3 e 64.7 Index scor60 62.1 62.0 58 56 54 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: World Economic Forum Fostering Effective Energy Transition: 2023 Edition 22